"We must get back to fundamentals and move with greater speed... It's time to simplify, refocus, and accelerate." - Brian Grass, Interim CEO
— Brian Grass
03Detailed Report
HELE
Helen of Troy Limited
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
In Q1 2026, Helen of Troy Limited (HELE) reported significant challenges, primarily due to tariff-related disruptions and shifting consumer behaviors that resulted in a 10.8% year-over-year decline in consolidated net sales. Despite these headwinds, the company's management highlighted improvements in specific product categories and expressed optimism about strategic initiatives aimed at stabilizing and reviving revenue growth. Interim CEO Brian Grass emphasized the importance of simplifying operations and refocusing on core strengths along with five key priorities to drive profitable growth.
The company's net income was dramatically affected, resulting in a loss of $450.7 million, which included considerable non-cash impairment charges due to declining stock prices. The current fiscal environment calls for investors to monitor management’s execution of its turnaround strategy and the ongoing impacts of tariffs on revenue and cost structures. While the immediate outlook remains cautious, there are indications of potential recovery driven by targeted pricing strategies and product innovations.
Key Performance Indicators
Revenue
Decreasing
371.66M
QoQ: -23.51% | YoY: -10.80%
Gross Profit
Decreasing
175.01M
47.09% margin
QoQ: -25.82% | YoY: -13.74%
Operating Income
Decreasing
-407.04M
QoQ: -20 300.40% | YoY: -1 356.60%
Net Income
Decreasing
-450.72M
QoQ: -985.20% | YoY: -7 364.96%
EPS
Decreasing
-19.65
QoQ: -985.14% | YoY: -7 657.69%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Overview:
- Revenue: $371.7 million, down 10.8% YoY
- Gross Profit: $175.0 million, gross profit margin down to 47.1%
- Operating Income: -$407.0 million, reflecting a significant impairment charge
- Net Income: -$450.7 million, leading to an EPS of -$19.65
- Free Cash Flow: $58.3 million, reflecting strong cash generation despite operational challenges
Quarter-over-Quarter Insights:
- Revenue Decline: 23.5% QoQ, exacerbated by tariff disruptions and inventory management issues at retail partners
- Total Liabilities: $1,424 million, with a leverage ratio of over 3.1 as the company seeks to stabilize its financial position
Cost Structure Analysis:
- SG&A Ratio: Increased by 420 basis points due to incremental growth investments, CEO transition costs, and higher outbound freight expenses.
The substantial decline in profitability indicates the necessity for Helen of Troy to effectively execute its cost reduction and tariff mitigation strategies in the near term, with the expectation of substantial recovery benefits in the second half of the fiscal year.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
371.66M
-10.80%
-23.51%
Gross Profit
175.01M
-13.74%
-25.82%
Operating Income
-407.04M
-1 356.60%
-20 300.40%
Net Income
-450.72M
-7 364.96%
-985.20%
EPS
-19.65
-7 657.69%
-985.14%
Key Financial Ratios
Management Insights Available for Members
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